Information agency Credinform has prepared a ranking of the largest Russian metal companies. The companies with the largest annual revenue (TOP-10) have been selected for the ranking, according to the data from the Statistical Register for the latest available accounting periods (2014 - 2017). Then they have been ranked by return on investment ratio (Table 1). The analysis was based on the data from the Information and Analytical system Globas.

Return on investment ratio (%) is a ratio of net profit (loss) to total net assets. The ratio demonstrates the rate of return from each ruble raised from investment, that is the amount of monetary units needed for the company to raise one monetary unit of net profit. This ratio helps to evaluate the advisability of raising debt funds at a certain interest.

The whole set of indicators and financial ratios is to be considered in order to get a full and comprehensive insight into a company’s financial standing.

Таблица 1. Net profit, revenue, return on investment ratio, solvency index Globas of the largest Russian metal companies (TOP-10)

Name, INN, region, key activity	Sales revenue, billion RUB		Net profit (loss), billion RUB		Return on investment, %		Solvency index Globas
	2016	2017	2016	2017	2016	2017
1	2	3	4	5	6	7	8
SEVERSTAL PJSC INN 3528000597 Vologda region Manufacture of crude iron, ferroalloy, steel	305.3	359.5	84.7	130.2	58.22	70.95	168 Superior
Mining and Metallurgical Company NORILSK NICKEL PJSC INN 8401005730 Krasnoyarsk territory Manufacture of other non-ferrous metals	422.8	455.9	122.8	130.0	54.59	52.23	201 Strong
NOVOLIPETSK STEEL PJSC INN 4823006703 Lipetsk region Manufacture of cold-rolled steel	335.2	411.8	36.4	109.5	11.56	32.17	136 Superior
MAGNITOGORSK IRON & STEEL WORKS PJSC INN 7414003633 Chelyabinsk region Manufacture of crude iron, ferroalloy, steel	339.1	392.8	68.0	67.3	33.8	28.94	159 Superior
EVRAZ NIZHNY TAGIL METALLURGICAL PLANT NJSC INN 6623000680 Sverdlovsk region область Manufacture of crude iron, ferroalloy, steel	111.9	144.7	14.3	55.9	8.14	27.88	138 Superior
VYKSA STEEL WORKS NJSC INN 5247004695 Nizhny Novgorod region Manufacture of tubes, pipes, hollow profiles and related fittings, of steel	115.0	147.1	24.8	21.0	33.25	22.07	174 Superior
RUSAL BRATSK ALUMINIUM SMELTER PJSC INN 3803100054 Irkutsk region Production of aluminium	82.0	94.0	3.7	2.8	22.55	18.22	213 Strong
CHELYABINSK METALLURGICAL PLANT PJSC INN 7450001007 Chelyabinsk region Manufacture of crude iron, ferroalloy, steel	107.1	118.6	15.0	5.4	38.7	12.21	350 Adequate
EVRAZ CONSOLIDATED WEST SIBERIAN METALLURGICAL PLANT NJSC INN 4218000951 Kemerovo region Manufacture of sectional hot-rolled steel and wire rods	148.1	181.4	8.9	6.6	9.94	7.65	196 Superior
Chelyabinsk Pipe Plant PJSC INN 7449006730 Chelyabinsk region Manufacture of tubes, pipes, hollow profiles and related fittings, of steel	99.8	116.1	4.2	1.1	13.72	3.88	214 Strong
Total for TOP-10 companies	2066.4	2421.8	382.6	529.8
Average value for TOP-10 companies	206.6	242.2	38.3	53.0	28.75	27.62
Industry average value	1.8	n/a	0.2	n/a	25.36	n/a

— growth compared to prior period, — decline compared to prior period.

Average value of return on investment ratio of TOP-10 companies is higher than the average industry value. In 2017 only three of TOP-10 companies demonstrated growth of the ratio.

Picture 1. Return on investment ratio and revenue of the largest Russian metal companies (TOP-10)

Average industry values of return on investment ratio tend to decrease slightly within the last decade (Picture 2).

Picture 2. Change in average industry values of return on investment ratio of the largest Russian metal companies in 2007 – 2016

The Federal Law №313-FZ of 03.08.2018 introduces amendments to the Federal Law «On development of small and medium-sized enterprises in the Russian Federation».

The amendments removed restrictions on a limit share (49%) of foreign legal entities in the authorized capital of small and medium-sized enterprises (SMEs).

This refers to the foreign legal entities related to small and medium-sized enterprises, which are not registered in offshore zones. In addition the procedure for identification of foreign legal entities as the SMEs is defined. Audit companies make a conclusion based on legally confirmed criteria: average employees number and turnover.

Meanwhile, it is introduced, that in order to maintain the Unified register of SMEs, once a year the audit companies should submit the list of limited liability companies to the Federal Tax Service of Russia. The list should contain the companies with foreign legal entities as shareholders as of January 1 of the current calendar year. The list will be formed by audit companies based on the analysis of statements provided to the tax authorities in countries where they were established.

The Law also clarifies the procedure, regulating the annual inclusion of information on joint stock companies in the Unified register of SMEs on the basis of data received by the Federal Tax Service of Russia from share registrars.

Besides, business partnerships can now be classified as SMEs.

The Law also empowers NAO Federal Corporation for Development of Small and Medium Enterprises to provide services for the development of SMEs, including the information, marketing, financial and legal support of SMEs and individuals intending to start commercial activities.

The Federal law has already entered into force with the exception of certain provisions, which will come into operation from 01.12.2018.

At the same time, the Federal Law №322-FZ of 03.08.2018 amending the Federal Law «On insurance of deposits of individuals in banks of the Russian Federation» and other legislative acts of the Russian Federation was adopted. According to the amendments, from 01.01.2019 the deposit guarantee scheme will include the small businesses contained in the Unified register of SMEs.

The funds of small enterprises do not pass the insurance procedure in case they are placed in deposits certified by deposit certificates or placed in subordinated deposits. Herewith, banks are obliged to keep records of liabilities to depositors in such a way as to provide the ability to determine funds on the same balance accounts being or not being subject to insurance.

Banks are also obliged to update information on depositors - small enterprises.

The right to compensation for deposits for small enterprises arises under the condition of registration in the Unified registry of SMEs as of the occurrence of the insured event.

As of 10.08.2018, 5922420 entities employing 16053300 workers are registered in the Unified register of small and medium-sized enterprises of the Russian Federal Tax Service. Detailed information about activities of the registered companies is available by subscription to the systemGlobas